Prime Minister Julia Gillard, Minister for Climate Change and Energy Efficiency Greg Combet and Minister for Innovation, Industry, Science and Research Senator Kim Carr today announced a $300 million package to support jobs in Australian steel manufacturing.
This package comes in addition to the assistance for businesses within emissions-intensive trade-exposed industries under the Jobs and Competitiveness Program, also announced today.
The Steel Transformation Plan will be complemented by a small increase in free permit allocation for the steel industry from 2016-17 onwards.
Australian steel makers are currently facing considerable pressures from external factors other than a carbon price, including a high Australian dollar, increases in
raw material costs and weak growth in the Australian construction industry.
Through the Steel Transformation Plan, the Gillard Labor Government will provide $300 million to encourage investment and innovation in the Australian steel manufacturing industry.
This will assist the sector to transform into an increasingly efficient and sustainable industry in a low-carbon economy.
As part of our package to support jobs, the steel industry will be eligible for 94.5 per cent assistance under the Jobs and Competitiveness Program to shield it from the full impact of a carbon price.
The Jobs and Competitiveness Program has been carefully designed by the Government to provide generous industry assistance measures for jobs and
business to assist a smooth and manageable transition to a clean energy future. It will provide assistance of $9.2 billion over the first three years.
The Jobs and Competitiveness Program from 1 July 2012 will support businesses within emissions-intensive trade-exposed industries that face international competition from companies in countries yet to introduce comparable costs on carbon.
The Productivity Commission will review the treatment of the steel industry as part of the EITE assistance review in 2014-15, and three years' notice will be provided of any changes to assistance arrangements consistent with the treatment of all EITE activities.
Further information in relation to the Government's clean energy future and carbon price announcement is available at www.cleanenergyfuture.gov.au